The Central Directorate of National Savings (CDNS) has reduced profit rates on the majority of its National Savings Schemes (NSS), effective January 23, 2026.

According to data compiled by Arif Habib Limited, released on Friday, the return on Short-Term Special Savings Certificates (STSC) was cut by 110 basis points (bps) to 9.58% from 10.68%, marking one of the steepest declines among the schemes.

The rate on the Defence Saving Certificate reduced by 64bps to 10.44%. Similarly, the Regular Income Certificate was lowered by 60bps to 9.96% from 10.56%.

Rates on the Pensioners’ Benefit Account, Behbood Savings Certificate, and Shuhada Family Welfare Account were each reduced by 48bps to 12% from 12.48%, while the Special Savings Certificate rate was cut by 40bps to 10.20%.

In contrast, Special Saving Account showed a reversed trend, recording a notable 20bps increase, taking the rate to 10.40%, making it one of the few instruments to offer higher returns after the revision.

Market participants view the across-the-board reduction as aligned with expectations of a gradual decline in key interest rates amid moderating inflation and improving macroeconomic indicators.

Last month, contrary to market expectations, the Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) decided to reduce the policy rate by 50bps to 10.5%.

The National Savings Organisation is Pakistan’s largest financial institution, managing a portfolio exceeding Rs3.4 trillion and serving over 4 million customers through a network of 376 branches across the country, administered by 12 Regional Directorates.

The CDNS helps the government finance budgetary deficits and support critical infrastructure projects.